ukbestessays.com
It is Good for a Corporation if the Board Members Own Stock | Professional Custom Essay Writers
It is Good for a Corporation if the Board Members Own Stock The major role of a firm's board of directors is effectively devising the company's business strategy, policy and plan. They, in a big way, determine the success of a firm, hence the stock value. Introduction The Board of Directors works to see to it that the share holders get profit from the shares they hold in that firm. Therefore, being in such a position to influence the value of a company's shares, it would be profitable and advantageous for a firm if the top management owned the majority shares because, as such, they will fight tooth and nail to see their value go up. They would never leave anything to chance. The main responsibility of the board of directors is protecting the shareholders' assets and ensuring they receive a decent return for their investment. It is usually not a great concern when a company's management owns the majority stock. This is because, the more the management invests in its own stock, the